As the U.S. begins issuance of the new ePassports to citizens, Infineon has received an order for secure chips for the new program in the “multi-million piece” quantity. Government forecasts suggest that the U.S. will distribute 15 million of the new passports in the first full year of issuance.

San Jose, Calif. and Munich, Germany – August 21, 2006 – Infineon Technologies AG (NYSE/FSE: IFX) today announced that it received a multi-million piece purchase order from the United States government to supply its highly-secure integrated circuit technology for the new electronic passport. Designed to facilitate international travel by allowing automatic identity verification, faster immigration inspections and greater border protection and security, the new passports include a computer chip in the back cover that securely stores the same information that is printed on the document.

The US began issuing electronic passports to diplomats and other government workers in late 2005, and is now expanding the program to include the widely issued tourist passport used by private citizens. By the end of this year, the government expects that all new US passports will be issued as electronic passports.

“The United States is helping to set the pace for adoption of more secure travel documents around the world,” said Christopher Cook, Managing Director of Infineon Technologies North America Corp. “As the leading supplier of the specialized chips used for secure personal identification, financial transactions and access to electronic systems, our chips have successfully passed some of the most stringent security tests in the world. We are very happy to be chosen to supply the electronics for the large-scale roll-out of the US electronic passport.”

Infineon supplies its secure identification chips to more than 20 countries that have begun to use electronic passports or have begun to test this technology, including Germany, Hong Kong, Norway and Sweden. In addition, Infineon provides the secure chips inside electronic identity documents used in such countries as Italy, Finland, the United Arab Emirates, Australia and Belgium, and also for Hong Kong, as well as the chips used for secure identification cards issued by the US Department of Defense.

State-of-the-art protection of information

As a security measure, the US Congress passed legislation requiring that countries participating in the US Visa Waiver Program must issue passports with secure chip technology by October 2006. Concurrently, the US adopted this technology to conform to specifications for electronic passports developed by the international standards body for travel documents, the International Civil Aviation Organization.

In the past ten years, the US has issued more than 67 million passports, which are valid for ten years from date of issue. The US Government estimates that up to 15 million new passports will be issued in the first full year of the electronic passport roll-out – which currently represents the single biggest electronic passport project worldwide. Each new passport will contain a chip, protected by shielding material, which contains an encrypted copy of the printed information on the passport – including the bearer’s name, date of birth, validity period and a digital photo of the individual. The digital photo allows the use of facial recognition technology at border crossings to authenticate the passport holder’s identity.

The electronic passport is designed with multiple layers of security to protect the privacy of holders. This includes Basic Access Control (BAC), which requires the border control inspector to pass the document over a scanner that reads coded information and then authorizes the electronic reader to access the data stored on the chip. The actual data transmission occurs over a distance of about four inches (10 centimeters). In addition to shielding and BAC, there are more than 50 individual security mechanisms inside the Infineon chip, including sophisticated computing methods for encrypting data, to help ensure that personal data remains private. Security mechanisms on the Infineon chips also include active protective shields on the surface of the chip and sensors that help prevent unauthorized people from being able to read the contents of the chip.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products through its subsidiary Qimonda. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com. Further information on Qimonda is available at www.qimonda.com.